Understand Your Rights. Solve Your Legal Problems
When disaster strikes — whether a wildfire sweeps through your neighborhood, a flood destroys your home, or an earthquake shakes your foundation — the one thing that stands between you and total financial ruin is your insurance policy. Yet too often, homeowners discover too late that their coverage is incomplete, outdated, or riddled with exclusions they never noticed.
In this feature, Lawyer Monthly speaks with David Furtado, Founder of Furtado Law PC in Denver, Colorado, about why understanding your insurance policy is critical to protecting your property, your finances, and your peace of mind. With nearly three decades of litigation experience and a multidisciplinary background in finance, accounting, and engineering, Furtado explores how policy language, coverage limits, and insurer practices can make or break a claim when the unthinkable happens.
Every insurance claim begins with the policy itself — a legal contract that defines both rights and responsibilities. Attorneys handling coverage disputes must understand the intricate policy language, statutory law, and case law that shape outcomes.
Policies are filled with specific definitions, coverage limits, and exclusions. Many contain broad or ambiguous wording that can lead to competing interpretations. Knowing whether a loss is covered or excluded often comes down to how each clause is read.
Even when a policy doesn’t mention a specific scenario, that omission cannot automatically be filled in by interpretation. Both explicit and implicit terms matter, and misreading either can result in a denied claim.
Far too many homeowners underestimate the importance of adequate coverage. Believing that “it won’t happen to me,” they prioritize low premiums over comprehensive protection. The result? A staggering 60% of U.S. homes are underinsured, often by at least 18%.
Outdated policies, rising construction costs, and home improvements not reported to insurers can all lead to coverage gaps. To stay protected, homeowners should maintain updated records of renovations, security upgrades, and major purchases — all of which can influence their coverage needs and potential discounts.
Choosing a cheaper policy may seem like a cost-saving measure, but it can result in denied claims and uncovered losses when disaster strikes. As Furtado notes, “Saving a few hundred dollars on premiums today could cost you hundreds of thousands tomorrow.”
Natural disasters are the leading cause of home damage — accounting for roughly 70% of all insurance claims. Yet not all policies cover every type of event. A single storm might include wind, rain, and flooding — each potentially treated as a separate event with individual deductibles.
Building code changes can also inflate restoration costs by thousands of dollars, yet many policies only offer limited coverage for ordinance and law-related expenses.
Similarly, while earthquake policies are common in high-risk regions, they often exclude damage from landslides, sinkholes, and subsidence. In states like Oklahoma, where man-made seismic activity is linked to fracking, coverage definitions become even more complex. Homeowners must read policy terms carefully to avoid unexpected coverage gaps.
Across the U.S., insurers are pulling out of high-risk regions or cancelling policies after repeated catastrophic losses. Homeowners in states like California and Florida are facing non-renewals and skyrocketing premiums as insurers struggle to remain profitable amid mounting climate risks.
Failure to disclose past claims can also lead to coverage denials. Many homeowners mistakenly believe that withholding information will improve their chances of a payout — when in fact, nondisclosure can invalidate their entire policy.
Those unable to secure standard coverage increasingly rely on state-run “insurers of last resort” such as FAIR Plans, the California Earthquake Authority, or Florida’s Citizens Insurance. These programs exist to ensure basic access to coverage, but they often come with higher premiums and limited benefits.
Some insurers are taking unconventional measures to protect policyholders. Chubb, USAA, and other major companies have begun hiring private firefighting teams to safeguard insured homes in wildfire zones.
In one Colorado wildfire, Chubb’s private crews were credited with saving 10 homes. USAA now offers wildfire response programs in 15 states, providing proactive measures like debris removal and home monitoring.
However, this practice raises ethical and logistical concerns. Wealthier neighborhoods benefit from private protection, while less affluent communities remain at higher risk — widening the gap between those who can afford enhanced insurance and those who cannot.
Insurance is more than a financial product — it’s a cornerstone of resilience. Understanding your policy, keeping coverage current, and being transparent with your insurer are essential steps in protecting your most valuable asset.
“Homeowners who read and understand their policies are better equipped to recover from disaster,” says Furtado. “It’s not just about what your policy says — it’s about knowing what it means.”
Mother Nature may be unpredictable, but preparation can turn uncertainty into stability. Review your policy today, update your coverage regularly, and remember: fortune favors the prepared.
David Furtado, Founder of Furtado Law PC, is a seasoned attorney with extensive experience in insurance law, construction defect, and civil litigation. He holds degrees in Finance, Accounting, and Electrical Engineering, as well as a Juris Doctor from the University of Denver.
Licensed in multiple states — including Colorado, California, Alabama, and Massachusetts — and registered as a patent attorney with the USPTO, Furtado brings a multidisciplinary perspective to complex insurance and liability cases. His Denver-based firm, Furtado Law PC, represents clients nationwide in first- and third-party insurance disputes.
Furtado Law PC
3773 Cherry Creek Drive North, Suite 755
Denver, CO 80209, USA
Tel: +1 866-497-6106
E: info@furtadolaw.com
